Proposal: Kenyan Working Abroad to Face Mandatory Deductions
By new proposals aimed at addressing the requirements of migrant workers, Kenyans working abroad will be required to contribute to the Kenya Migrant Workers Welfare Fund through a mandatory deduction.
By the proposal of the Ministry of Labour, all Kenyans working abroad will be registered with the Fund for the deductions, which will assist the government in monitoring the workers’ requirements.
The Ministry asserts that the Fund will serve as a Relief Fund for employees in the event of medical emergencies or when they become stranded abroad.
Families of migrant laborers will also benefit from the Fund in cases when the principal contributor dies.
The government has not yet determined the precise amount of deductions, though legislation establishing the fund is expected to be made public in the coming days.
Notably, in March, CS Florence Bore disclosed that proposals for the Fund were in high gear, despite the government’s efforts to address the numerous challenges that migrant workers have confronted over time.
She stated that more than four million Kenyans worked abroad and that the reforms would be useful in streamlining the sector.
The Fund will also be established by the Cabinet-approved Labor Migration Policy 2023.
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“Kenya is working towards the establishment of the Kenya Migrant Workers’ Welfare Fund that will provide migrant workers with the necessary social protection,” Bore stated during the 2nd IGAD Ministerial Conference on Labour, Employment and Labour Migration in Addis Ababa, Ethiopia.
“The Policy (Labour Migration Policy 2023) aims to promote good governance in labor migration, protect migrant workers, promote their welfare and that of their families, and optimize labor migration benefits in development,”
Occasionally, Kenyan migrant laborers have been stranded due to health-related issues or mistreatment at the hands of their Gulf-based employers.
This has resulted in Kenyans being required to pay for the return of their relatives.
With the new proposals, the government intends to increase the fund, which could reach billions due to the monthly remittances received from Kenyans working abroad.
The Central Bank of Kenya (CBK) estimated in July 2023 that Kenyans abroad had transferred over Ksh350 billion.
Proposal: Kenyan Working Abroad to Face Mandatory Deductions